Don’t Be a Slave to Your House

Real estate data firm RealtyTrac found that foreclosures rose to a record 1.05 million last year, eclipsing the previous record of 918,000 a year earlier. That means 26% of all homes sold in 2010 were foreclosures. Those foreclosure numbers aren’t expected to wane anytime soon. RealtyTrac found that 2.9 million homeowners received foreclosure notices in 2010, with 20% more expected to be in trouble this year.

With the housing crisis, many homeowners are finding they are “upside down” on their mortgages. As a result, more people are filing for bankruptcy or allowing the lender to repossess their homes. There are some who opt to keep their homes, despite sound financial reasons for giving them up. This may be fine if you can afford it, but if not, don’t be a slave to your house. 

In America homeownership is a valued goal. Our homes contain years of memories; they make us feel secure. Losing our home can mean loss of cherished memories and security. Keeping your home may be a worthy goal, even if you owe more than it is worth, especially if there is great sentimental value in the home for your family, but if you cannot afford the house, do not be a slave to memories and security. Find a home or apartment you can afford. 

Filing for bankruptcy protection can give you permanent or temporary relief from home foreclosure. An automatic stay may give you temporary relief if you are unable to afford your home, but you may be able to restructure your mortgage payments by filing Chapter 13 Bankruptcy and keep your home. 

Chapter 13 Bankruptcy will only allow you to keep your home if you are making current mortgages payments and you have paid the arrears, if any, on the home. 

If you file Chapter 7 Bankruptcy you may be able to keep your home, but it will depend upon the homestead exemption for your state. If your payments are not in arrears when the bankruptcy is discharged, you most likely can keep your home by making the payments. If the payments are in the arrears after the automatic stay has been lifted, foreclosure will usually follow. 

Keeping a home after you file bankruptcy can be a very complicated issue. Talk to bankruptcy lawyer if you have questions. If you need of relief from the stress of debt and you live in or around the metropolitan areas of Sarasota or Bradenton, Florida, contact us at www.betterbankruptcy.com. We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

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